Doubling of mandatory dinar reserve

NBS Governor Radovan Jelasic announced that the reserve banks are required to keep in dinars will be increased from 20 to 40 pct. This, the central bank chief said, according to a Beta report, will take place on Dec. 8 at the latest. Doubling of mandatory dinar reserve In this way some EUR 700mn worth of Serbian dinars (RSD) will be withdrawn from circulation, which will increase the liquidity on the foreign exchange market, Jelasic stated at the Ekonomist Media Group's annual forum on financial services in South East Europe n Thursday. The governor also underlined that the National Bank is to adopt measures that will keep foreign currencies, which will be returned to the banks, in Serbia. Jelasic also said that the so-called open position of banks, with their former positive and negative of 20 percent of capital will be cut down to 10 percent, for banks to be less exposed to the foreign currency risk. He repeated that the board of directors of the International Monetary Fund on Dec. 19 is to confirm the arrangement with Serbia which will serve as a foundation for the country's macroeconomic stability program. "The draft of the memorandum between the Serbian government, the National Bank of Serbia, and the Deposit Insurance Agency on the maintenance of stability and liquidity of the financial sector, which will include specific amounts, should be finished next week at the latest," he stressed.

Doubling of mandatory dinar reserve

In this way some EUR 700mn worth of Serbian dinars (RSD) will be withdrawn from circulation, which will increase the liquidity on the foreign exchange market, Jelašić stated at the Ekonomist Media Group's annual forum on financial services in South East Europe n Thursday.

The governor also underlined that the National Bank is to adopt measures that will keep foreign currencies, which will be returned to the banks, in Serbia.

Jelašić also said that the so-called open position of banks, with their former positive and negative of 20 percent of capital will be cut down to 10 percent, for banks to be less exposed to the foreign currency risk.

He repeated that the board of directors of the International Monetary Fund on Dec. 19 is to confirm the arrangement with Serbia which will serve as a foundation for the country's macroeconomic stability program.

"The draft of the memorandum between the Serbian government, the National Bank of Serbia, and the Deposit Insurance Agency on the maintenance of stability and liquidity of the financial sector, which will include specific amounts, should be finished next week at the latest," he stressed.